A Small Country's Aggregate Production Function Per Hour of Labor

question 85

Multiple Choice

A small country's aggregate production function per hour of labor given by Y = K^1/2. Its depreciation rate is 1% and its investment rate is 10%. What is its steady-state level of capital?

• A) 1
• B) 10
• C) 100
• D) 1,000

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Definitions:

Glomeromycetes

Fungi that partner with plant roots; their hyphae grow inside cell walls of root cells.

Soil Fungi

Fungi that live in the soil, playing critical roles in nutrient cycling, organic matter decomposition, and as symbionts or pathogens of plants.

Hyphae

The long, branching filamentous structures of fungi, which collectively form the mycelium and are the primary mode of vegetative growth.

Hyphae

The long, thread-like structures that make up the body of fungi and some prokaryotic organisms.